PricewaterhouseCoopers (PwC) is reportedly laying off approximately 1,800 employees, marking its first formal cuts since 2009.
What Happened: The layoffs will impact about 2.5% of PwC’s U.S. workforce, primarily affecting its advisory, products, and technology operations. The cuts will span from associates to managing directors, including roles in business services, audit, and tax, The Wall Street Journal reported, citing people familiar with the matter.
The firm plans to notify the affected employees in October. PwC’s U.S. leader, Paul Griggs, mentioned in a memo that the layoffs are part of a strategy to position the firm for future growth and market opportunities, according to the report.
Griggs also acknowledged the significance of the announcement date, Sept. 11, a day on which the firm lost five colleagues. The last formal layoffs in PwC’s U.S. unit occurred in 2009.
Pwc’s restructuring aims to embed its products and technology teams into individual business lines and streamline business services processes. This move follows Griggs’ appointment as U.S. leader in May and a structural overhaul that took effect in July.
PwC did not immediately respond to Benzinga's request for comment.
Why It Matters: The layoffs at PwC come at a time when the firm is undergoing significant changes and facing various challenges.
Earlier this year, PwC became the largest customer of OpenAI's ChatGPT Enterprise, rolling out the AI product to over 100,000 employees across the U.S. and U.K. This move was seen as a major step towards integrating advanced technology into its operations.
In July, PwC initiated layoffs in its China operations following a substantial loss of corporate clients and regulatory pressures. The firm is also under scrutiny by Chinese authorities for its role in the $78 billion Evergrande fraud investigation.
Additionally, the U.S. economy is showing signs of a slowdown in job growth. Treasury Secretary Janet Yellen recently predicted a “soft landing” for the economy, despite concerns over job growth. She emphasized that the economy is “deep into a recovery” and “basically operating at full employment,” even though recent job reports have been weak.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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